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Home My WebLink About2021-01-26 Finance Committee Minutes Finance Committee � Minutes of January 26, 2021 i.,III III i i,� ��i i oil i�li+illgllYr III I i�iIG �IlVili IM Present: Chairman Sasha Weinreich, Edward MacMillan, Jennifer Burns-Luz, Christine Allen, Dustin Silk,Regina Kean, Thomas Ringler, Denevan O'Connell Absent: Kevin Foley Non-Finance Committee Members: Town Manager Melissa Rodrigues, Superintendent Gregg Gilligan, Assistant Superintendent Janes Mealey, School Committee Chair Helen Pickard, Finance Director Lyne Savage Ms. Weinreich read a quick statement before the meeting started"Pursuant to Governor Baker's March 121 2020 Order Suspending Certain Provisions of the Open Meeting Law, G.L.c 30A, Section 18 and the Governor's March 15, 2020 Order imposing strict limitation on the number of people that may gather in one place,this meeting of the North Andover Finance Committee will be conducted via remote participation to the greatest extent possible." Ms. Weinreich called the meeting to order at 7:03PM via conference call. Ms. Weinreich did a roll call. Ms. Weinreich led the Pledge of Allegiance. Public Comment No public comment. Financial Review&Update by Town Manager Rodrigues and Finance Director Lyne Savage e Ms. Savage presented the financials through 12/31/2020. Ms. Savage stated the following: -Property tax is 47.4%, comparable to last year, slight delay due to software conversion -Motor vehicle excise tax is at 15.4%, 1%over last year at this time -Meals tax is at 25%, considered on target due to the adjustment that the DOR required -Ambulance collections are at 54.75%where last year was at 45% at this time - Interest income is down substantially, other line items will make up the short fall - Snow account has 34% spent - Stevens Estate has struggled due to COVID with 17.3% collections where last year was at 36.9% at this time - $87.8 million in total for cash Ms. Allen asked about meals tax. Ms. Savage explained how the tax rate was originally set before COVID-19 hit. Ms. Savage explained that 2022 will be more of a hit. Mr. Ringler asked if there are a few cracks in the quality of North Andover's revenue where tax payments may be delayed. Ms. Savage stated that no issues have been seen yet. Ms. Kean asked Ms. Savage about the special revenue funds. Ms. Rodrigues presented an update of the Town's budgeting process. Ms. Luz asked if there will be any funding or grant sources available this year and how is the budget expected to evolve. Ms. Rodrigues stated that meals tax will most likely not come back until next year as people are still nervous eating out. Ms. Rodrigues stated no,there will not be any additional funding any time soon. Ms. Allen mentioned the $100,000 for public health that barely covers additional salaries for public health staff and will not cover for facilities. Ms. Rodrigues explained the upcoming vaccine distribution. Mr. O'Connell asked if there is a best practices for a town of North Andover's size and what should normally carry for free cash. Ms. Rodrigues stated North Andover's free cash is different as to how it was received. Ms. Rodrigues explained that currently it is a combination of permit fees, Colombia Gas reimbursements and the gap of not having a Town Manager for a period of time and not paying the salary. Ms. Rodrigues explained free cash will sit at$4-6 million normally. Mr. O'Connell asked on CIP how the free cash was determined approximately$4 million. Ms. Rodrigues explained the number. Ms. Kean asked about the free cash scenario if the Stabilization transfers are in line with policy percentages. Ms. Kean asked about OPEB transfer. Ms. Rodrigues stated they are in regular transfer. Ms. Savage stated$75,000 will transfer from Operating Budget to OPEB. Ms. Kean asked about projected additional COVID-19 expenses and an explanation of what each expense is for. Dr. Mealey stated it will be in his presentation. Ms. Allen asked about if there will be a Finance Reserve Fund going forward. Ms. Rodrigues stated yes. Mr. Ringler mentioned numbers have gotten better over the last 7 years from being conservative. Mr. Ringler asked if the Facilities Master Plan placeholder numbers will come back for Town Meeting. Ms. Rodrigues stated no,the School Committee has formed a subcommittee since four of the five buildings are school related and placeholder numbers have been eliminated since it is too difficult to determine cost. Mr. Ringler asked about raising funds now. Ms. Rodrigues stated the funds will be replenished in the near future with permit fees and rather save the debt capacity for larger projects. FY22 School Budget Presentation by Superintendent Gilligan and Assistant Superintendent Meale� Dr. Gilligan and Dr. Mealey both gave the presentation on FY22 School Budget. Dr. Gilligan mentioned that there will be a public hearing on 1/28/21 and another for the School Committee on 2/4/21 to vote on the budget. Dr. Gilligan provided the following FY22 Budget key points: - 2.5%provides for a level services budget and is consistent with revenue impacted by the pandemic - Identifies possible Covid—related expenses for FY22 that will be funded as one-time expenses - Adjusts 5 year plan to a 7-year plan to account for impact of pandemic and to coincide with school buildings that will be a part of the Facilities Master Plan Phase II - Annual percentage increase will not meet the needs to the students. Need support of the entire community to help fund the long-term plan Ms. Pickard explained the following School Committee Budget Directives: - For each directive use the lens of continued Covid response learning. Create parallel budget plans for contingencies, including anticipation of available state and federal funding, separating one-time expenses related to Covid from general fund budget needs - Retain and/or add necessary teaching positions to support the core teaching and learning mission, creative programming and special education - Maintain class sizes to meet the guidelines with no class exceeding 28 students. Goal class sizes are: o Grades K-2 class size: 18-22 o Grades 3-5 class size: 23-25 o Secondary level: class sizes to meet programming and needs - Align the FY22 budget with the strategic objectives and initiatives outlines in the approved North Andover Public Schools' Strategic Plan. Ensure that the budget aligns with the identified early indicators of success, the resources needed and the longer-term anticipated outcomes Dr. Mealey presented the 7 year plan budget. Ms. Weinreich asked if the teachers represented in the 7 year plan include their benefits. Dr. Gilligan stated yes. Ms. Weinreich asked how much per employee. Dr. Mealey stated$6,000 over 10 years. Ms. Kean asked of the $1 million for COVID recovery service does not include the cost of new employees. Dr. Mealey stated yes. Ms. Weinreich asked about the appropriation from free cash what the proposed function is. Ms. Pickard stated they have only had one meeting to be able to discuss it and does not feel the School Committee is on board with anything until they meet a few more times to deliberate. Ms. Weinreich asked Dr. Gilligan when the student assessment data will provide guidance. Dr. Gilligan stated it is an ongoing process throughout the year. Mr. O'Connell asked about the $1 million for studying the analyzation and data collection. Dr. Gilligan stated the $1 million is for staffing based on where the students are at,what their needs are and how best to tackle that problem. Mr. O'Connell asked what the perfect class size would be in a perfect world. Ms. Pickard stated the numbers are in the budget directives. Dr. Mealey stated the School Committee will be revisiting the numbers. Mr. O'Connell asked Ms. Rodrigues if free cash would be used if school needed additional funds due to COVID. Ms. Rodrigues stated yes. Mr. Ringler asked why the budget went from a 5 year plan to a 7 year plan. Dr. Mealey explained it is due to COVID and is more aligned with Facilities Master Plan II timeline. Ms. Luz asked if there is a plan to address issues of younger ages who struggle with remote learning and need additional resources. Dr. Gilligan stated they are looking into April vacation for an acceleration academy and a possible summer program for kids to get caught up as well as looking into support and staff next year to get the kids back to full time school. Ms. Luz asked if the staff brought in this year will be utilized and the $200,000 of additional staff enough to move kids forward. Dr. Mealey stated many costs will be cut and moved to recovery services due to recovery from COVID costs. Ms. Allen asked if a consultant should be hired to find out the needs of the kids and the programs that can be put together to accomplish the goal. Dr. Gilligan stated he would be open to the idea. Ms. Pickard stated that they are not waiting until next year to find out if children were falling behind so they have set up interventions to address the children that are in need and this is continuously happening. Old Business None. Approval of November 9,2020 &December 14,2020 Minutes MOTION:Ms. Kean motioned to approve minutes of September 22, 2020. Mr O'Connell seconded. Roll Call-MacMillan-yes,Allen-yes, Ringler-yes, Luz-yes, O'Connell-yes, Kean-yes, Silk-yes, Weinreich-yes. Motion approved 8-0. Adjournment MOTION:Mr O'Connell made a motion to adjourn at 9:07PM, seconded by Ms. Allen. Roll Call- MacMillan-yes,Allen-yes, Ringler-yes, Luz-yes, O'Connell-yes, Kean-yes, Silk-yes, Weinreich-yes. Motion approved 8-0. Respectfully submitted, Jillian A. Brothers Executive Assistant